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UPDATE - 100pt Mortgage Score Increase!!

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Anonymous
Not applicable

Re: What kind of score increase will I get?

It sounds like all your CC balances will be optimized and reporting perfectly by the end of May, plus you have derogs coming off (you hope) etc.

 

Combine that with the fact that the lenders won't be pulling your scores till mid-July and man are you ever gonna be in great shape.

 

I do note that you write....

 

The lender also does rapid rescoring, so I have that on my side as well in the event I need it for credit card updating. 

 

If I am understanding your situation right, however, that should NOT be needed, right?  I think you have got your CC balances in perfect shape now -- you just need time for them to report the All Zero Except One to the three bureaus.  And that will without a doubt have happened by early June.

 

You should be able to perfectly control your reported balances after that, right?  You understand how to keep all of them at $0 except one?

 

 

 

Message 21 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

Correct. I'm hoping I do not need rapid rescoring. I just mention it as a worst case scenario. 

 

My husband's CapOne card that I'm the AU on will be paid off on May 12th. Paying it off to show $0 balance. His statement is due on May 13th, and CapOne reports on May 16th. 

 

Yes, I think I understand how to keep it all at $0 except for one. I do use the cards throughout the month and I have the timing down of when the statements are cut and then reported to the bureaus. My plan is to let the NFCU card be the one reporting a balance since. My CapOne has reported a $0 balance for a consecutive two months now. 

 

Or, do you think I should my CapOne report a balance next month and have NFCU at $0? And just rotate from there? My husband's CapOne card must stay at $0 because the only items he has on his report is a Discover card with $2200 limit/$500 balance, and the CapOne with $2500 limit. 

Message 22 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

Do you and your husband each have at least one credit card that is in your name alone (with the spouse not an AU)?  If so, figure what that card is (for each of you) and the owner should making that card his/her card to show a small positive balance, with all other cards reporting $0.

 

You want the one card that reports a small positive balance to have all of the following true about it:

 

(1)  It is a true credit card (not a charge card)

(2)  It is a card in your name (not an AU card)

(3)  The balance shows $5 or more

(4)  The credit limit for the card is < $29,900.

 

There's another nice feature about having all your cards on your report showing $0 except one (which shows a small balance).  And that's that it will help your DTI.  The only debt that will count toward your DTI will be the minimum payment on that one card with the small balance.

Message 23 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

Yes all three of those apply to us.

Husband's cards
Discover IT $2200 limit - not sure what balance is as of now, he's been paying it down. It was $800
CapOne $2500 limit / $600 balance, this is the card I'm the AU on

My cards:
NFCU, $1,000 limit, $75 balance
CapOne, $500 limit $0 balance
Message 24 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

Just wanted to add that I noticed something last night. 

 

My student loans are not on my TU report, so now I'm wondering what caused the score increase. 

 

I did have a settlement with BB&T for an auto loan from 2011. After I paid the settlement and it was updated on the credit report, I called TU and asked for an EE and used the reason the account is too old to report. The account is scheduled to drop off TU due to age in December 2017, so maybe that's what happened?

Message 25 of 67
HeavenOhio
Senior Contributor

Re: What kind of score increase will I get?


@Anonymous wrote:
I'm not sure if it's the norm, but my mortgage scores have consistently been a couple of points higher than my FICO8 scores.

I think we have a tendency to hear about mortgage scores when they unpleasantly surprise people. But I'd guess the reality is that there isn't a set pattern. The last time I saw all my scores on the same date, my mortgage scores covered a 21-point range, and my FICO8s landed right in the middle of them. Of the six scores, the lowest and two highest were mortgage scores.

Message 26 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

Another reason that mortgage scores can be lower for people is if their FICO 8 scores are really good.  The mortgage models have different top ranges than does FICO 8.

 

A perfect FICO 8 score is 850 and many people report having one.  A perfect EQ mortgage score, in contrast, is 818.  It is impossible to score higher than 818.

 

So as a person's FICO 8 scores begin to climb past 780, it becomes increasingly likely that his mortgage score will be lower, and this is especially true for EQ, simply because of the scoring ranges.  (The ceiling for TU mortgage is 839.)

Message 27 of 67
HeavenOhio
Senior Contributor

Re: What kind of score increase will I get?

CCID, if the ceilings on these scores are 818 and 839, do you have any idea why myFICO tells us that the ceiling is 850? What's the ceiling for EX?

 

mortgagescores.png

Message 28 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

That's a very good question!

Message 29 of 67
Anonymous
Not applicable

Re: What kind of score increase will I get?

Just saw a post from Thomas Thumb about signing up with Privacy Guard as they use CreditXpert. 

 

Equifax and Experian show a score of 582, while TransUnion is at 625. If I read TT's post correctly, CreditXpert uses the FICO 04 model for scoring. Is this true? If so, having a TU mortgage score of 625 is AWESOME considering where I've started. 

 

I should also add that my CC balances haven't updated yet. The simulator on CreditXpert says my Experian score will increase 31 points if I pay my CC balances to the all at zero except one with 9% reporting. That was also cool to see. 

Message 30 of 67
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